Currency dispensers generally have minimal functionality, especially when embedded in an Automated Teller Machine (ATM). However, increasingly data recording and tracking requirements are required to assure accuracy of properly dispensing currency denominations from the dispenser.
Moreover, any error rate at all is an unacceptable situation to both the customers receiving currency from the ATM and to the enterprises that service and stock the ATM with the currency. Because, when currency loading errors occur someone is short funds, either the customer or the enterprise that stocks the ATM.
Fraud is also an issue because a service engineer may knowingly or unknowingly stock an ATM with counterfeit currency, such that whoever is eventually caught with the counterfeit currency may incur legal troubles and that individual may find it very difficult to trace back to where the counterfeit currency came from. Even assuming the counterfeit currency can be tracked back to an ATM, proving the ATM dispensed it may be even more problematic with lack of proper record keeping.
Essentially, currency dispensed from an ATM is not adequately tracked, recorded, or monitored. In response, some governments (particularly China with others to follow) are proposing laws and regulations to provide tracking and record keeping of the currency dispensed from ATMs.
The challenge is that the dispensers embedded in the ATM are largely mechanical with minimal processing capabilities.